Japan Steel Tube Price Negotiation Becomes Tangles for Automobile

Price negotiation for steel tube for automobile is proceeding with difficulty between Japanese welded steel tube maker and automobile makers or component makers on fiscal 2008 at ended March 2009. Steel tube makers requested to increase the selling price by over 35,000 yen per tonne. Steel tube makers will settle the price negotiation within September. Japanese integrated steel makers raised steel sheet price against steel tube makers due to increased iron ore and coal prices. Steel tube makers raised selling price of electric resistance welded tube twice for the shipping in April and July, which increased selling price by over 35,000 yen per tonne. Steel tube makers expected to settle the negotiation within July at first. But automobile makers and component makers resisted steel tube makers’ price hike. However, automobile makers and component makers are beginning show an understanding of the steel industry market condition.Steel tube maker source said the firm’s profit more slips if the price negotiation is settled at an early date when the material price already increased.